Science, Technology, Innovation and Entrepreneurship: A comparative overview of OECD countries

SCIENCE, TECHNOLOGY,

INNOVATION AND

ENTREPRENEURSHIP: A

COMPARATIVE OVERVIEW OF OECD

COUNTRIES

2nd World Conference on Technology, Innovation and Entrepreneurship

Andy Wyckoff,Director for Science, Technology and Innovation, OECD

12 May 2017Istanbul, Turkey

Megatrends for Science, Technology and

Innovation

Megatrends&

Technology Trends for STI

Urgency of policy action

Science and innovation are key

Science, Technology and Innovation today

R&D has fallen behind other policy priorities in

many countries

Source: OECD R&D Statistics (RDS) Database, April 2016, www.oecd.org/sti/rds; OECD National Accounts Database.

Government budget appropriations and outlays for R&D, as a % of total government expenditures, 2000 and 2015

Public R&D budgets are likely to plateau

around current ratios…

Government budget appropriations and outlays for R&D, as a % of GDP

Source: OECD R&D Statistics (RDS) Database, April 2016, www.oecd.org/sti/rds.

France

United Kingdom

Germany

Unites States

Sweden

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1981 1985 1989 1993 1997 2001 2005 2009 2013

Chinese Taipei

EU28

Mex ico

Norway

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1981 1985 1989 1993 1997 2001 2005 2009 2013

Denmark

Korea

Austria

FinlandIceland

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1981 1985 1989 1993 1997 2001 2005 2009 2013

… requiring a combination of public and

private efforts...

Source: OECD, Main Science and Technology Indicators Database, January 2016, www.oecd.org/sti/msti.htm.

USA

CHN

EU28

JPN

DEU

KOR

FRA

GBR

RUSBRA

ITA

CAN

AUS

TUR

MEX

ARGZAF

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

0 10 20 30 40 50 60 70 80 90 100

Percentage of GERD financed by industry

OECD average = 2.4%

OECD average = 60.9%

G20 countriesnon-G20 OECD countries

Gross domestic expenditures on R&D as a percentage of GDP

… and increased government support for

business R&D across countries.

Direct government funding of business R&D and tax incentives for R&D, 2014

Source: OECD, R&D Tax Incentive Indicators, http://oe.cd/rdtax and Main Science and Technology Indicators, http://oe.cd/msti, March 2017.

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

% Indirect government support through tax incentives Direct government funding of BERD Data on tax incentive support not available

Indirect government support to business R&D, 2006 or nearest year, where available

Could increasingly generous R&D tax incentives

jeopardize our fundamental research?

Change in R&D tax costs (% annual growth) and the share of public support going to firms (% point) , 2006-14 or nearest years available

Source: Based on OECD R&D Tax Incentive Indicators, www.oecd.org/sti/rd-tax-stats.htm, July 2016; OECD Main Science and Technology Indicators, www.oecd.org/sti/msti.htm, June 2016; OECD R&D Statistics (RDS) Database, April 2016, www.oecd.org/sti/rds.

There is emerging evidence of more public support going to firms – and away from public

research - due to more generous R&D tax incentives

More support given to firms (and less to public research)

More generous tax concessions

9

Public research has shifted

towards universities …

Public R&D, OECD, % of GDP

Source: OECD Main Science and Technology Indicators (MSTI) Database, June 2016, www.oecd.org/sti/msti.

Higher

education

Government

Funding by industry, OECD, USD million 2010 PPP

… that are increasingly relying

on private funding

0

10

20

30

40

50

60

70

%

Science, mathematics and computingEngineering, manufacturing and construction

0

10

20

30

40

%

Science, mathematics and computingEngineering, manufacturing and construction

Tertiary education has expanded

to support the supply of skills for innovation

Tertiary education graduatesin natural sciences and engineering,selected G20 economies, 2013

Graduates at doctorate levelin natural sciences and engineering,selected G20 economies, 2013

Source: OECD, Education Database, April 2016.

Megatrends&

Technology Trends for STI

Capacity of governments to intervene?

Competing policy priorities and agendas (financial resources?)

Shaping future R&D and innovation policy agendas?

Opening science

Building international cooperation

Urgency of policy action

Science and innovation are key

Science, Technology and Innovation today

Open science is on the march

Number of papers, 2000-13

Source: Based on Laakso, M. and B.-C. Björk (2012), “Anatomy of open access publishing: A study of longitudinal development and internal structure”, BMC Medicine, Vol. 10, p. 124, http://www.biomedcentral.com/1741-7015/10/124, and website of the Open Access Scholarly Publications Association (OASPA), http://oaspa.org/growth-of-fully-oa-journals-using-a-cc-by-license/.

International knowledge networks are more

diverse

Source: OECD (2015), OECD Science, Technology and Industry Scoreboard 2015: Innovation for Growth and Society, http://dx.doi.org/10.1787/sti_scoreboard-2015-en.

Citation counts, by country of main affiliation of citing and cited corresponding author

International citation network, 1996-2013

International net flows of scientific authors, G20 economies, 1999-2013

Source: OECD (2015), OECD Science, Technology and Industry Scoreboard 2015: Innovation for growth and society, http://dx.doi.org/10.1787/sti_scoreboard-2015-en.

International mobility is a major channel for

knowledge circulation…

-15 000

-10 000

-5 000

0

5 000

10 000

15 000

-100

-80

-60

-40

-20

0

20

40

60

80

100

1999-2003 2004-08 2009-13 Net flows, full period (right-hand scale)

% Flows

Highest expected citation impact of scientific authors by mobility profileBased on the median Scimago Journal Rank (SJR) score of 2013, mobility patterns over 1996-2013

Source: OECD (2015), OECD Science, Technology and Industry Scoreboard 2015: Innovation for growth and society, http://dx.doi.org/10.1787/sti_scoreboard-2015-en.

… and for research excellence.

16

http://oe.cd/STIOutlook

• Global megatrends and societal challenges highlight the need for some big solutions and radical changes, including in our STI policies.

• There is a risk that as countries focus internally, it could threaten future international cooperation for R&D, innovation and international mobility – just when we need it most.

Conclusions and Policy Implications

• There are growing concerns about declining public funding for R&D and innovation, and the situation could deteriorate further with austerity and ageing societies.

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